TATA MOTORS

Indian auto group wants to buy Ford factory in India to strengthen itself in the electrification era

TATA Motors, one of India's leading automakers, has signed a memorandum of understanding for the potential acquisition of a vehicle production centre. TATA wants to buy the Ford plant in India. These are facilities that, if eventually acquired, will play a key role in the electrical offensive that the company is carrying out.

In fact, TATA is interested in acquiring the vehicle production center that Ford owns in the western Indian state of Gujarat. This plant was 'orphaned' the moment Ford announced that it would stop manufacturing cars in India. Therefore, a good business opportunity arises for TATA to increase its production capacity.

TATA now dominates the emerging Indian electric car market. Local authorities are trying to accelerate the growth of tram sales by offering numerous incentives. In a way, it seeks to emulate the success of the electric car in China. And more specifically in the giant Chinese cities.

In the TATA line are very interesting electric cars such as the Tata Nexon EV. These are vehicles that offer a very good relationship between performance and price. These are models that, if they were marketed in the West, would certainly put the electric cars of the most popular generalist brands in serious trouble.

For now, the financial details behind the transaction currently being negotiated between TATA and Ford are unknown. Now, the mere fact that this statement was issued is irrefutable proof that movements are taking place behind the scenes.

TATA confirmed that, by acquiring the Ford plant in the city of Sanand, it will make an important investment to renew the machinery and re-equip the facilities with the aim of increasing its vehicle production capacity at full steam until reaching a maximum volume of 400,000 vehicles. annual units. This hypothetical investment will be carried out through the electric mobility division of the Indian company.

Shailesh Chandra, Managing Director of TATA Passenger Electric Mobility, highlighted that the increase in demand for TATA electric vehicles has led to multiple growth: “The growing preference of customers for passenger and electric vehicles manufactured by TATA has led to multiple growth… This transaction potential will support capacity expansion”.

Autonews